Investment Q&A

Q: Hi,

I have four questions.

1) How do you decide on what is the optimal level of EV/EBITDA and debt to equity ratio for different industries (such as high tech, consumer discretionary, financial, industrial, small growth companies)?

2) Can you please recommend some reading material on analyzing company fundamentals?

3) What is your opinion on Adobe Systems (ADBE)?

4) What is your opinion on Amphenol Corp (APH)?

Thank you,
Lai

Q: Would you please comment on the purchase of Alta Gas Subscription Receipts.
Thanks,
Bill

Q: The Canadian bank stocks have been declining since the last week Fed Reserves rate hike and potential more hikes. What is your opinion about Canadian banks in short run (one year or so) and long run (3-5 years)? From your professional point of view, when the Central Bank is about to raise rates in the future?

Q: Would you consider entering this stock at todays price?? Would your rating have changed since your report??

Q: Tahoe resources released 2016 results and issued guidance to 2019 on 9 March. The results didn't seem to warrant the sell off and the guidance also seemed OK. I noticed AISC will go up next year because of increased gold production but again it didn't seem all that bad. Do you know if the market expected better results or was the guidance out of line with consensus? I would like to increase my precious metals exposure in this company and am trying to suss out the reason for the sell off? Do you have any opinion on management? Thanks

Kenn

Q: I have both Enbridge and Brookfield Renewable in my portfolio. Would it be advantageous to move to one or the other? It seems that Enbridge is setting itself up quite nicely for long term growth and income and looks to be a real good buy and hold. BEP is no slouch either. Please let me know your analysis, much appreciated, thanks!

Q: REITs
Further to my last question on this subject, in looking at the REIT portion of my portfolio, I am mindful of (and calculate) the sector allocation (office, retail, industrial, residential) and the geographical distribution (the main Canadian provinces individually and the US as a whole). I am cautious about US exposure, because I am retired, rely on the distributions for income and don't want excessive foreign exchange exposure. Do you have recommendations concerning sector and geographical allocation? My intuitive sector thoughts are residential 40%, office 30%, retail 20%, industrial 10%. My geographical thoughts are US 30% and Canadian provincial allocation by GDP. Or am I overthinking this whole thing?

Q: Hi Peter & Team,

Any insights into NYX's recent strength? Could the tides be turning for the laggard?

Thanks,

Jordan

Q: Held in taxable account. Room in TFSA. With rate outlook would now be a good time to absorb the gain while planning to buy back in?

Q: Hello 5i Team

It is that time of year when I start receiving the proxy materials for votes at the upcoming annual meeting.

One thing that I have noticed is the US companies mail out a simple 5 1/2" x 8 1/2" envelope with two pieces of paper, the meeting information notice and the voting instructions. Every thing else the management proxy circular and the annual report you have to download from the internet. This results in a small mailing and keeps the costs down.

The Canadian companies mail out an 8 1/2" x 11" package containing the voting instructions, an envelope, a flyer advertising "paperless" steps, sometimes the management proxy instructions and particularly the Canadian Banks a copy of the annual report. All this "excess" paper drives up costs for the companies (and reduces profit for investors).

I prefer the US system where the mailing is kept to the minimum. I am not interested in receiving the proxy notice via email as the Canadian system prefers to register each individual security with "Investor Vote" or the other Proxy companies. If I use the "paperless" option I have to register each individual security, which is confusing.

The two questions are:

1 - Why cannot the Canadian companies do what the US companies do? Is this a difference between the Security and Exchange Commission (SEC) in the US and the Canadian Security Commissions (all 13 of them !!!)

2 - Why can't the brokerage houses send me the notifications via their electronic system, just like they do with trade notifications and statements. I will be sending this question to my self-directed (discount) brokerage provider.

Thanks again for the excellent work.

Q: My investment advisor has suggested that I sell Crombie due to uncertainty regarding Sobeys, Crombie's principal tenant. Do you share this concern?

He suggested True North as a replacement. What is your opinion?

I would replace Crombie with office and/or residential REITs.

With respect to office, I have enough Artis AX.UN, but could add to H&R HR.UN or buy another which you would recommend. Suggestions?

With respect to residential, I have plenty of Canadian Apartments CAR.UN but would buy another recommendation. Suggestions?

Q: Thoughts on the quarter and year end. Will this be a good play on zinc once the strike is settled?

Q: Could you please give me your take HWD's 4th quarter results and their outlook for 2017. they do talk about the possible ramifications of possible or probable Trump trade changes as a headwind but with most of their product and biz still in the USA the future still looks good to me here.I hold about a 2-3% position in my tfsa and rrsp (up about 15% on hwd). Do you consider this worth holding or maybe moving on.I have a well diversified portfolio holding many of 5i's recommendations. I'm not sure how the market will react to the results on Monday, if it dives I am considering adding a bit and if it spikes I may trim a bit. I do like the fact that it is not widely followed and very few shares out and I do plan on holding it for at least a couple of years. Looking forward to your take on it.

thanks Tom

Q: Your thoughts on Quantam Storage please? Thank you.

Q: Looks like the banks are softening both in the US + Canada I own BAC Royal MS BNS PYPL and C... Time to take profits or wait the correction out? Thanks for your valued opinion

Q: both companies have large production increases in relatively near future, very low production cost, no dividends, and are by my estimate very cheap. Which would you prefer for the next 2 - 3 years??

Q: Market timing is generally frowned upon by professionals including 5I.I find myself selling a number of my positions because of valuations and good profitable outcomes. I also find that I am not redeploying that cash because of valuations! I firmly believe in taking profit and some of the greatest mistakes I have made are in regards to holding positions to long. To many times in my early investment life (the round trip) occurred. After a number of years I relized that you are investing 2 commodities "dollars and time" and I could not continue to keep exposing my dollars and losing time. So if I sell my winners and do not redeploy my cash in a timely fashion then I would seem to be guilty of "market timing".

Why am I so wrong!

Randy

Q: Gentleman
Congrats to the staff member with the newborn, I am sure he will be busy. My question is about the latest take-over bid for Norsat.This is the second one from a different party, do you feel that this is a fair offer? I am thinking of selling,just in case the Feds raise the inclusion rate on capital gains, though it may be to late because the budget come out in 3 days.

Thanks

Q: Following up on my earlier question about where to find the removal of CGX from the balanced portfolio, is there a way to get a listing of all historical changes to a portfolio? Or, as an alternative,where can I access past member updates to sift through to get the changes? Getting a listing of all changes is the preferred way to go.

Q: What are your views on IMM. Thanks Ted